Legal and ethical considerations

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Sound ethical conduct is really important to success in the purchasing field, as is having a solid understanding of legal requirements. This video discusses three important legal documents for sourcing globally and also explains some unique circumstances that challenge a buyer’s business conduct.

- "If you don't have integrity, you have nothing."…That sounds like something a great philosopher…from the past might say,…but actually, it comes from Henry Kravis,…the founder of a private equity firm here in the US.…I think that's a pretty good quote…to kick off a conversation…on legal and ethical considerations…for purchasing professionals.…Because sound ethical conduct is especially critical…to success in the purchasing field.…Buyers are exposed to rather unique situations…that may challenge their business conduct.…

Here are a few circumstances that buyers must avoid.…Purchasing personnel must be very careful…about accepting favors from suppliers.…Even the smallest of favors like dinner…or tickets to a sporting event.…Such favors are often expected to be returned…and that's a danger zone for buyers.…Contracts must be awarded to suppliers…based on the merit of their bid.…The most extreme form of a favor is called a kickback,…in which the buyer receives the cash payment…from the supplier after the contract is signed.…

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Released

7/23/2016

Purchasing departments add value and maximize savings for their organizations. In this course, supply chain expert and professor Steven Brown outlines the purchasing process and provides guidance for evaluating, selecting, and managing suppliers. He also addresses the roles of cost management and strategic sourcing, and the legal and ethical considerations involved. Plus, learn about special topics such as indirect spend on services (including transportation and utilities), esourcing, and supply chain performance management.